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What are the range accrual notes?

What are the range accrual notes?

A Range Accrual Note (RAN) is a structured product typically issued by a financial institution such as a bank. The payoffs from such a note are more complex than those for a plain-vanilla fixed income product, all else equal.

What is range accrual swap?

A range accrual swap is a swap in which one leg pays an accrual coupon and the other leg is a standard floating leg. A callable range accrual swap is an accrual swap which gives the party paying the accrual coupon the right to cancel (or call back) the swap on any coupon date after the initial lock-out period.

What is klibor linked range accrual structured products?

This KLIBOR-based Callable Range Accrual FRNID (Series 25) is an investment product with a maturity of FIVE (5) years that enables customers to earn a potential higher return than the conventional deposit. It provides 100% principal protection if the FRNID is held to maturity.

What is fixed coupon note?

FCNs are a type of equity-based structured note. They provide regular coupon payments to the investor regardless of market conditions. FCNs are sophisticated investment products that carry significant risks and are not suitable for investors who do not comprehend the product or are risk averse.

What are structured products examples?

A simple example of a structured product is a $1000 CD that expires in three years. It doesn’t offer traditional interest payments, but instead, the yearly interest payment is based on the performance of the Nasdaq 100 stock index. If the index falls, the investor still receives their $1000 back after three years.

How is accrual amount calculated?

Example of an Accrual Rate You can calculate the daily accrual rate on a financial instrument by dividing the interest rate by the number of days in a year—365 or 360 (some lenders divide the year into 30 day months)—and then multiplying the result by the amount of the outstanding principal balance or face value.

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